Report: GM to repay its government loans entirely by the end of June
By Andrew C., 27 Aug, 2010. 0 Comments
GM Logo
General Motors Chairman and interim CEO Ed Whitacre gave an official statement recently. GM is said to repay its government loans entirely by the end of June. This boils down to GM currently owing the U.S. Treasury about $6.7 billion dollars. GM's cash can amount to $42.6 billion at the end of the third quarter. However, it isn't going to simply pay off the funds all at once.
Doing so would eliminate a lot of the liquidity GM needs to maintain day-to-day operations, as well as in developing and launching new products. GM is said to pay off the loan with quarterly payments. The first, which is priced $1.2 billion, will be due at the end of this month. Whitacre mentioned the loan could be repaid even sooner than June, but that could depend on market situations and available liquidity. All eyes are on the new GM now as fans await its first public stock offering. It's unknown when the new GM will be announcing its public offering. Former CEO Fritz Henderson and government officials had hoped to push the IPO out by the fourth quarter of 2010 but there's currently no timetable. [via automobilemag]
Latest Auto Shows
